THESE were the dramatic scenes in Liverpool today as the city was crowned European Capital of Culture 2008.

THESE were the dramatic scenes in Liverpool today as the city was crowned European Capital of Culture 2008.

The city beat its opponents - and the bookmakers, who ranked Newcastle as favourites - to land an accolade which will create 15,000 jobs and bring more than £200minto the city.

Bid leaders joined ordinary people in jubilant celebration as the announcement was made at 8.10am in London today by Culture Secretary Tessa Jowell.

She sparked incredible scenes with the simple words: "The winner is . . . Liverpool."

The news was greeted with sheer joy as it was brodcast live to a packed Empire Theatre in the city centre.

At the same time, taxi drivers in Lime Street sounded their horns.

Now the party can really begin as Liverpool gears up for two fantastic years - its 800th birthday in 2007 and as Capital of Culture the following year.

The city can proudly boast its status as the Capital of Europe

Tourism in 2008 will attract 1.7 million people and, in the years leading up to it, visitors will spend £220min the city.

The total investment in the city over the next five years is expected to be an extra £2bn.

Tessa Jowell headed straight for Liverpool after making the announcement and was being taken on a tour of the city to see for herself what made the 12 judges choose our bid.

Tessa Jowell was arriving at Lime Street station with n man of the judges Sir Jeremy Isaacs, to be met by the lord mayor, Cllr Ron Gould, and bid leaders.

Schoolchildren with homemade placards waited for them, along with a military band.

The secretary of state was being taken to the Empire Theatre to formally hand over the Prime Minister's letter of congratulations to the city of Liverpool.

There were cultural events at St George's plateau and a tour of St George's Hall before the return to London.

After that, a huge party was being thrown at the town hall.

Immediately after today's announcement, bid leader Sir Bob Scott pledged:"We now have a big responsibility to represent Great Britain and show what we can do.

"I am sure we can be the greatest European Capital of Culture that Britain has ever seen.

"This is a fantastic day and is a reward for the hard work that we have done since the bid began."

Liverpool council leader Mike Storey summed up the mood of the city, saying: "This is as good as Liverpool winning the Champions League, Everton winning the double and the Beatles getting back together.

"I am really proud and this gives us the opportunity to make real changes in the future and make things better.

"It is an honour which will transform Liverpool forever and a lot of people have worked extremely hard to get us the title."

City council chief executive David Henshaw added: "There will be so much to gain from being named Capital of Culture in 2008.

"The city will look at June 4 as the moment we finally began to realise our true potential as a world city."

The creative director of Liverpool's bid, Sue Woodward, said: "Liverpool's time has come. The judges have placed their faith in us and we must deliver."

A huge media pack gathered in the glass atrium at the Liverpool Empire to capture the moment the city was told it had won.

Sir Paul McCartney said: "I've been rooting for Liverpool to win this honour ever since I first heard about it. Now it has really happened, it is brilliant news.

"Liverpool is not just Capital of Culture, it's the capital of the universe! It deserves this honour in so many ways."

Liverpool hotels boss Stephen Roberts said: "This is the best news the city has had this century.

"It will be a tremendous shot in the arm for all the hotels and raises tourism to another level."

Liverpool brewer Cains is to bring back its limited edition 2008 Ale in tribute to the Capital of Culture success.

The specially-brewed ale sold out almost immediately when it was released as part of the city's campaign for the title.